Shiv plans to open a bakery called Shiv's Cookie Cakes that will specialize in cookie cakes and other pastries. She has a culinary degree and wants to partner with her sister and friend. She has found a suitable location that is 5,500 square feet and costs $93,500 per year to lease. The bakery will require equipment like an oven, mixer, and displays. Shiv expects to attract customers of all ages from the nearby apartments and hopes her convenient location will give her an advantage over larger competitors in the mall.

1. {
Shiv’s Cookie Cakes
By: Shivani Darji

2. Goods and Services/ FOP
My bakery will provide cookie
cakes as well as other pastries
and drinks. I need to find a
location for my bakery, I
already have a culinary degree,
and now I need to hire some
employees. Then I will need
equipment like a dough mixer,
machine for the drinks, oven,
and simple necessities like
sinks. I will also need to order
tables, chairs, and counters so I
can get started.

3. Shiv’s Cookie Cakes
Since my company will mostly
making cookie cakes, my title
will be “Shiv’s Cookie Cakes.”
My slogan will be “Do
whatever it takes, just come to
Shiv’s Cookie Cakes.” I know
my family would want to help
so I will have a partnership
with my sister and a close
friend. Together, we can put
our minds and money together
to create the bakery. I also
know that I can trust them
completely since we all have
really goof relationships with
one another.

4. Location
I will not need a very big place
to start my business and I can
always expand my business once
it starts booming. The space I
found is about 5,500 SF and
$93,500 a year. The lease term in
36 months which is enough time
for my business to start up and
grow. It is also in a
neighborhood center which is
perfect because I actually used to
live in these apartments and I
would go to the near by places
with some friends.

5. Necessities
The capital goods my
business will need is of
course the building, dough
mixer, counters, tables,
chairs, oven, display shelf,
and a register. My inventory
should be stocked with
cookie dough along with
other item’s dough that we
sell. We should also have
icing and other decorator
items. Natural resources can
include sugar and water.

6. Licenses and expenses
Some of the licenses for starting a
bakery in Duluth would be the
Duluth Business Occupational Tax
Certificate, Gwinnett County Food
Safety Manager Certification, and the
Gwinnett County Food Service
Permit. Expenses include the cost of
labor, advertising, administrative
costs, fees for the factors of
production, capital goods, and the
inventory. The median bakery
insurance can cost from $425-$455.
The food tax for bakeries is currently
4% and the total tax rates can be as
high as 8%.

7. Demographics Since my store would be right next to
the apartments I used to live in, I
know that there is a range from
toddlers to senior citizens. There are
also many new parents and dog
owners who like to walk around the
lot. I personally used to go to a near
pizzeria, but if there were a bakery, I
would have gone there. I am trying to
appeal to an audience of all ages
because everyone loves a local bakery
that they can walk to. The apartment
manager used to buy large pizzas
from the local pizzeria and share it in
the cyber café during the super bowl
and I know if there was a bakery, he
would have bought some cookie cakes
too.

8. Market structure
I would say that my business’ market
structure would be Monopolistic
Competition because I believe in
freedom of entry and exit, but I also
don’t want to have to make the same
exact products as my competitors. My
main competitor would have to be the
Great American Cookie place at the
mall or the Forum because they also
specialize in cookie cakes and other
pastries. Although, I do feel confident
that if there were to be Shiv’s Cookie
Cakes around the area that I have
chosen, then more people would come
there because it is closer and around
other popular businesses.

9. Shiv’s Cookie Cakes
123-456-7899
Located in John’s Creek Walk
“Do whatever it takes,
just come to Shiv’s
Cookie Cakes”